Renewable Energy System Exemption

Eligible States

SD

Type

Tax Exemption

Area of Interest

Renewable Energy

Description

In March 2010, South Dakota established a new property tax incentive that replaced two existing property tax incentives for renewable energy. Facilities that generate electricity using biomass resources are eligible for this incentive.

For eligible facilities less than five megawatts in capacity, all real property used or constructed for the purpose of producing electricity is assessed in the same manner as other real property. However, the first $50,000 or 70 percent of the assessed value of eligible property, whichever is greater, is exempt from the real property tax.